Key takeaways from RBI’s new directions:
Centralised reporting of digital lending apps (DLAs)
All regulated entities (REs) must now upload details of their DLAs on the RBI’s Centralised Information Management System (CIMS) portal.
The portal goes live on May 13, and REs have until June 15 to submit the initial data.
Public directory of lending apps
The RBI will publish a public directory of DLAs by July 1 on its website.
This list will help users verify if a digital app is officially linked with an RBI-regulated lender.
However, the RBI clarified it won’t verify the data — the list will reflect what REs upload to the CIMS, on an “as is” basis.
The directory will update automatically whenever REs add or remove apps.
Greater transparency in loan aggregation
If a lending service provider (LSP) works with multiple REs, the borrower must get a digital view of all available loan offers.
Apps must show offers that match the borrower’s request, along with unmatched lender names.
Stricter due diligence for third-party partners
Before signing deals with LSPs, REs must assess the partner’s technical capability, data privacy practices, and storage security.
Why this matters
Digital lending has grown rapidly, but it has also led to rising concerns over hidden charges, aggressive recovery practices, and fly-by-night apps.
The new rules aim to clean up the space by enforcing uniform standards and better borrower protection.
What’s next?
REs must act to report their DLAs to RBI.
Borrowers can soon check if a lending app is linked to a legitimate lender.
LSPs need to redesign their interfaces to comply with the loan aggregation display norms.
